Petoskey spending up 5 percent for next year

November 08, 2005|By Ryan Bentley News-Review staff writer

Petoskey city manager George Korthauer presented a 2006 city budget proposal with $25.7 million in planned expenditures to city council members for their consideration during Monday's regular council meeting.

Overall, this proposal reflects a 5 percent increase in spending over the budget which was proposed for 2005. Spending on operations is proposed to increase by 3 percent for 2006, while capital expenditures would go up by 10 percent.

Council members decided to schedule a hearing during their Dec. 5 meeting to gather public input on the budget proposal. Council members may also discuss the budget during their Nov. 21 meeting.

The budget proposal projects the city will receive $21.9 million in revenues for 2006. Funds already on hand would cover expenses beyond that amount.

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Korthauer said the most significant capital spending for 2006 is proposed in the electric utility category.

Petoskey's tax levies are proposed to total no more than 14 mills for 2006, Korthauer said, with the exact levy to be finalized roughly halfway through next year. For 2005, city tax levies total 13.935 mills.

No increases have been proposed in the city's charges for electric, water or sewer service, but fees for planning commission reviews of site plan, parking, land division, planned unit development and zoning requests, which now range from $50 to $250 in cost, would be increased ranging from $150 to $400, with applicants responsible for consultant expenses. Sign permit application fees would increase to $15, up $5 from the previous year. A proposed $100 increase in the zoning board of appeals hearing application would bring the total to $250. Right of way permits would increase from $30 to $50, with zoning compliance permits proposed to be adjusted from $10 to $15. Increases ranging from 2 to 5 percent are recommended for user rates at Magnus Park. A 2.5 percent increase is proposed in rental rates charged to users of the city marina.

Also during Monday's meeting, council member John LaTocha requested that city attorney Jim Murray, who's part of the Plunkett and Cooney law firm, review an authorization which the city staff gave developers of a condominium project at 414 W. Lake St. to use adjoining city property for parking and stormwater retention. Citing nearby residents' concerns that this authorization allowed the building to be built to a larger scale than would otherwise be acceptable, he sought to find out if the proper procedure had been followed.

Korthauer has previously said his administration granted the condominium site's owner a license to use adjoining city property for parking and stormwater retention purposes. This was provided in exchange for an easement that would be used for trail development. The decision was made based on input from the Petoskey Planning Commission.

LaTocha also inquired whether the city might wish to hire a special legal counsel to assist with one case which Plunkett and Cooney did not take on when they became the city's legal counsel this year.

Korthauer has said Plunkett and Cooney reportedly had been involved in this case, and added that there may be the potential for a conflict of interest if the firm were to get involved on the city's behalf.

Korthauer has been reluctant to describe the specifics of this matter, noting a concern about the possibility of breaching attorney-client privilege among the involved parties if it exists. He has noted that the file was related to a permit-seeking process, and that other organizations such as the Michigan Department of Environmental Quality and Environmental Protection Agency, are involved.

The city manager currently is seeking to resolve the city's involvement administratively rather than legally, and said he could likely provide the council with more details on the process within several weeks.

LaTocha expressed willingness to allow the city manager to continue on this course in the near future, but added that the city may wish to enlist other legal counsel if the issue isn't resolved promptly.